Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR) announced that Korea’s automobile exports fell 5.9 percent year-on-year to USD 5.83 billion in May 2026, amid fewer working days and production disruptions caused by a fire at a domestic auto parts. Domestic sales and production fell 10.3 percent and 8.2 percent, respectively. For January–May, export value and production edged down 2.6 percent and 2.3 percent, respectively, while domestic sales rose 1.0 percent.

By region, exports increased to Oceania (up 20.1 percent) and Africa (up 16.1 percent) in May, but declined in key markets, including North America (down 1.0 percent) and the European Union (down 6.5 percent). Exports also fell in Asia (down 37.3 percent) and the Middle East (down 4.2 percent). The decline appears to reflect a combination of domestic and external factors, including logistics disruptions from the prolonged war in the Middle East and lower used-car exports.

Exports of eco-friendly vehicles remained solid. Export value rose 9.9 percent year-on-year to $2.40 billion in May, accounting for more than 40 percent of total automobile exports. Hybrid vehicles made up about 65 percent of eco-friendly vehicle exports and continued to lead growth in the segment.

Domestic sales totaled 127,000 units in May, down 10.3 percent year-on-year. The decline reflected production and delivery disruptions for some domestically produced vehicles caused by parts supply issues, as well as delayed purchases ahead of new model launches scheduled for the second half of 2026. Eco-friendly vehicle sales rose 5.5 percent year-on-year to 77,000 units, accounting for more than 60 percent of total domestic sales. Electric vehicle sales rose 65.4 percent to 35,000 units.
Automobile production totaled 330,000 units in May, down 8.2 percent year-on-year. The decline reflected an average of one fewer working day and some production disruptions caused by a fire at a domestic auto parts supplier. As parts supply is expected to normalize beginning in June, production and export performance are projected to improve gradually.

MOTIR will continue communicating closely with the industry and monitoring parts supply, logistics conditions, and changes in export markets, as external uncertainties persist, including the global economic slowdown and expanded local sourcing by major global automakers.